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A mobile dental clinic is planning to offer teeth cleaning and dental evaluations in a rural town. Demand comes from two sources: children [dened as
A mobile dental clinic is planning to offer teeth cleaning and dental evaluations in a rural town. Demand comes from two sources: \"children\" [dened as people less than 13 years old] and \"adults\" [dened as people 13 years old or older]. The inverse demand curves for the two groups are: 1 Pg=?2DQC (I! Qc=ld2U-Pg PA=9%Q {=5 QA=Q1'PA The clinic can charge a different price for children and adults. The marginal cost per child is $5 and the marginal cost per adult is $T. The mobile clinic cannot accommodate more than 40 total people {children plus adults}. 10. What is the optimal child discount? {That is, if you calculate the protmaximizing prime for adults and children, how much lower is the price for children relative to the price for adults?) A. $1.00 B. $2.00 C. $3.00 B. $4.00 E. None of the other choices is correct A mobile dental clinic is planning to offer teeth cleaning and dental evaluations in a rural town. Demand comes from two sources: "children" (defined as people less than 18 years old) and "adults" (defined as people 18 years old or older). The inverse demand curves for the two groups are: 20 Po =7 - -Qc + Qc =140 - 20 . Pc PA = 9 - 1 10 -QA # QA =90 - 10 . PA The clinic can charge a different price for children and adults. The marginal cost per child is $5 and the marginal cost per adult is $7. The mobile clinic cannot accommodate more than 40 total people (children plus adults). 11. A pandemic hits the rural town where the mobile dental clinic was planning to operate. As a result, they have to space people out and so can only serve 21 people (21 total adults plus children). Assuming that the clinic re-optimizes its prices in light of its reduced capacity (suppose that there are no regulations that prevent the clinic from changing its prices), by how much does the pandemic reduce the clinic's profits (round your answer to the nearest 10 cents). A. $2.10 B. $2.30 C. $2.50 D. $2.70 E. None of the other choices is correct
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